EUR/AUD obtained rejected close to its earlier highs!

How low can the pair go earlier than the bulls cost again?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out CAD/CHF’s vary forward of BOC’s coverage choice. You should definitely take a look at if it’s nonetheless a very good play!

And now for the headlines that rocked the markets within the final buying and selling classes:

Recent Market Headlines & Financial Knowledge:

U.S. MBA Mortgage Purposes have been down -1.0% w/w vs. -6.9% w/w earlier; the common 30-12 months Mortgage Price rose from 7.7% to 7.9%

U.S. New Residence Gross sales for September: 12.3% m/m (-11.0% m/m forecast; -8.2% m/m earlier)

The Financial institution of Canada held the primary coverage rate of interest at 5.00% on Wednesday; expects inflation to return to the two% goal by the top of 2025 (from mid-2025 in July)

ECB President Lagarde says “We aren’t achieved but” preventing excessive inflation and are “very attentive” in monitoring Center East battle dangers

Japan’s service producers value index remained at 2.1% y/y (vs. 2.0% anticipated) in September

Australia’s import costs inched up 0.8% m/m (vs. 0.2% anticipated, -0.8% earlier) in Q3

Spain’s unemployment price went up from 11.6% to 11.8% in Q3

Worth Motion Information

Overlay of JPY vs. Main Currencies Chart by TradingView

There weren’t plenty of top-tier financial reviews scheduled through the Asian session so merchants largely prolonged the U.S. greenback’s lowkey upswing from the earlier session.

The Japanese yen did see an upward spike at first of European session buying and selling however JPY misplaced most of its sudden beneficial properties throughout the hour. One potential motive for the spike is merchants pricing in a possible BOJ intervention now that USD/JPY is buying and selling above the intently watched 150.00 mark.

JPY is presently within the pink in opposition to commodity-related currencies like AUD, NZD, and CAD and is buying and selling the best in opposition to CHF and EUR.

Upcoming Potential Catalysts on the Financial Calendar:

ECB’s coverage choice at 12:15 pm GMT
U.S. advance GDP at 12:30 pm GMT
U.S. core sturdy items orders at 12:30 pm GMT
ECB’s presser at 12:45 pm GMT
U.S. pending dwelling gross sales at 2:00 pm GMT
Tokyo’s core CPI at 11:30 pm GMT

Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

EUR/AUD 15-min Foreign exchange Chart by TradingView

A little bit of risk-taking or profit-taking from yesterday’s selloffs doubtless contributed to AUD and NZD buying and selling larger immediately.

The euro wasn’t so fortunate with merchants pricing within the ECB holding its rates of interest regular after elevating its charges within the final 10 conferences. And that’s with President Lagarde already repeating the central financial institution’s hawkish bias in an interview!

That is most likely why it was kinda straightforward for EUR/AUD to get rejected close to its 1.6825 earlier highs. Heck, the pair is already buying and selling nearer to the 1.6700 mid-range ranges!

How low can EUR/AUD go earlier than it attracts EUR consumers?

Not solely is the 1.6700 psychological stage close to the pair’s mid-range ranges, however its present costs additionally line up with the 15-minute chart’s Pivot Level and 200 SMA help.

If the ECB convinces the markets of its extended hawkish biases, or if we see a sell-the-rumor, buy-the-news scenario, then EUR/AUD might entice sufficient consumers to maintain the pair within the higher half of its 15-minute vary.

But when immediately’s market occasions encourage pro-risk or anti-EUR sentiments, then EUR/AUD might lengthen its downswing and be a focus for momentum merchants all the way in which to the 1.6600 S1 Pivot Level space.